The chief executive of Costa Mesa-based El Pollo Loco Inc. is leaving to join Colorado’s Red Robin Gourmet Burgers Inc. as the Mexican restaurant chain continues to struggle with falling sales.
Stephen E. Carley, who’s led El Pollo Loco since 2001 and has appeared in many of the chain’s commercials, is set to join Red Robin as chief executive in September.
Steve Sather, El Pollo Loco’s senior vice president of operations, is set to become acting chief executive upon Carley’s departure and appears to be in line for the job permanently.
Carley has overseen growth, an abandoned public offering, a company sale and, more recently, a downturn at El Pollo Loco.
El Pollo Loco has more than 400 company-owned restaurants and franchises in California, Arizona, Nevada, Texas, Connecticut, New Jersey and other states.
The restaurants have been hard hit by the recession and slow recovery, which has been particularly hard on Hispanics who make up a key part of El Pollo Loco’s diners.
For the three months through June 30, El Pollo Loco’s holding company had sales of $71.2 million, down 2% from a year earlier.
The company’s revenue includes sales from some 170 company-owned restaurants and revenue from about 240 franchisees.
Same-store sales, or sales at restaurants open for at least 15 months, fell 5% during the quarter from a year earlier.
The company posted a net loss of $2 million for the quarter, narrowed from a loss of $24.5 million a year earlier.
El Pollo Loco is privately held but reports results for debt holders. New York-based private equity firm Trimaran Capital Partners owns the majority of the company.
